Friday’s bearish USDA acreage report dealt a powerful blow to our limited risk, bullish positions in corn, wheat and soybean oil. Price fell and closed below our risk points for the second consecutive day in wheat triggering our exit signals. Soybean oil and corn were spared, but just barely. We may be exiting these soon as well.
While the USDA crop progress report (due out later today) could help turn things around, we are going to stick to our risk control discipline and bid adieu to the bull call spreads in wheat we originally recommended purchasing for 15 cents ($750) less a little over a month ago in Alert #13.
Losses are an inevitable part of trading, keeping them small is what separates successful traders from the rest. Let’s go ahead and stick to our discipline.